Project Profiles

Location

Salt Lake City, Utah

Project Sponsor / Borrower

Utah Department of Transportation

Program Areas

Mode

Highway

Description

The Interstate 15 reconstruction was the Utah Department
of Transportation's (UDOT) first design-build procurement.
The project involved the reconstruction of 16.2 miles of
interstate mainline and the addition of new general purpose
and high-occupancy-vehicle (HOV) lanes through the Salt
Lake City metropolitan area. The project also included
the construction or reconstruction of more than 130 bridges,
the reconstruction of seven urban interchanges, and the
reconstruction of three major junctions with other interstate
routes, including I-80 and I-215. In addition, the project
provides for the construction of an extensive region-wide
advanced traffic management system.

UDOT's decision to use the design-build model was motivated
by two factors. The first was the strong public support
for completing the project as soon as possible to minimize
the period of severe traffic congestion resulting from
the diversion of more than half of the traffic from I-15
during the construction period. The second factor was the
need to have the project completed before the 2002 Winter
Olympics in Salt Lake City. It was generally accepted that
use of the design-build contracting methodology was the
only way to satisfy these goals.

The design-build approach also relieved UDOT of many
problems associated with the coordination of the design
and construction of multiple individual projects in a congested
urban setting. The state procurement laws were modified
to clearly authorize the use of the design-build method
of contracting and to permit the award of a contract to
a firm that provided the "best value" proposal
to the state even if another firm bid a lower initial cost.

The project was approved by the Federal Highway Administration
(FHWA) as an experimental project under SEP-14. This approval
permitted the use of the design-build method and required
some deviations from normal federal-aid requirements dealing
with the selection of contractors and consultants.

The I-15 design-build contract included provisions for
payments of up to $50 million incentive bonuses for timely
performance, quality of work, complying with project management
requirements, community relations, and maintenance of traffic.

While this approach was attractive to the owner, it
created problems for the contractors who were not accustomed
to bidding for work that would be performed up to 25 years
later. When efforts to sufficiently raise the comfort level
of the proposers failed, the maintenance period was reduced
to a maximum of 10 years - an initial five-year maintenance
option and five one-year renewable options covering years
six through 10. Maintenance requirements and standards
were restricted to pavement surfaces, structures, and drainage
facilities and did not include any routine maintenance
activities.

The use of performance specifications, as opposed to
traditional prescriptive specifications, encouraged innovation
in design and construction. A long contractor warranty
or maintenance-after-construction period complements the
use of performance specifications by compelling the design-builder
to complete life-cycle-cost analyses of all design and
construction options.

UDOT also derived approximately $30 million in savings
by utilizing an Owner Controlled Insurance Program (OCIP).
The UDOT wrapped OCIP included pre-construction survey,
workers' compensation, general liability, and other miscellaneous
coverage for all contractors working on the project. In
exchange, the contractor was required to prepare a very
extensive safety plan and submit it for approval early
in the life of the contract. As an additional safety incentive,
they received a share of all insurance premium rebates
received after completion of the project. The OCIP was
funded entirely with State monies through a separate procurement.

Related Links / Articles

UDOT I-15 Test Bed Reports
A comprehensive listing and onward links to reports prepared
on the I-15 project are available at UDOT's website.